Ethereum ETFs Disappoint as Ether Prices Struggle to Surge
The post Ethereum ETFs Disappoint as Ether Prices Struggle to Surge appeared on BitcoinEthereumNews.com.
After half a year of anticipation, regulators from the SEC greenlighted the introduction of various funds linked to Ethereum. Among the most eagerly awaited are Invesco’s Galaxy Ethereum ETF, known simply as QETH, the Bitwise Ethereum ETF labeled ETHW, and the Grayscale Ethereum Mini Trust, going by the ticker ETH. These products promise to deliver exposure to Ethereum’s price swings in a manner familiar to traditional investors. They are poised to attract considerable sums of new capital in their debuts as some wait for options in this emerging asset class to arrive finally. Based on the technicals, a vast support level lies around $3,350, and significant resistance is at $3.6k. However, the Ethereum price has remained relatively high despite the notable increase in trading volume due to approval. Analysts have also raised concerns that the actual support level for Ethereum ETFs is somewhat lower than many had expected. Why is Ether Crumbling Down? Bloomberg analysts James Seyffart and Eric Balchunas reported that the SEC also allowed Grayscale Investments to convert its Grayscale Ethereum Trust (ETHE) into a spot ETF. As with the existing lineup of Grayscale products, each new spot exchange fund will hold Ether (ETH), Ethereum’s native cryptocurrency token. Bloomberg News also reported that most new ETFs will trade on CBOE-General. However, the price of Ethereum dropped by 1.25% since the wee hours of Tuesday. Despite the increase in trading volume, Ethereum’s free-falling price can be attributed to many reasons. First, the general market sentiment can still be bearish, and prices might decrease despite higher trade volumes. That approach of selling can be a drag on prices when large holders seem to sell to capitalize, and the trading range expands, leading them to operate from both sides. Even in this environment, ongoing regulatory scrutiny and uncertainty could be one…
Filed under: News - @ July 23, 2024 9:20 am